Tag Archives: Internet of Things

As heterogeneous computing starts to grow, intelligent networking will be the facilitators of smart enterprise systems architecture. Basically hardware vendors are beginning to put intelligent silicon on network adaptors. This provides the ability through deep packet inspection to realistically provide Network Function Virtualization (NFV) and true Software Defined Networks (SDN) as a part of hardware/software computing infrastructure. This requires an intelligent NIC, Software Defined Networks (SDN) & Web Services/Cloud Servers must be engineered to “be aware” of the intelligence in the hardware so that software can make smart choices based on business logic context.

We announced some exciting news today: We have entered into an agreement to purchase Nokia’s Devices & Services business, which includes their smartphone and mobile phone businesses, their award-winning design team, manufacturing and assembly facilities around the world, and teams devoted to operations, sales, marketing and support.

For Microsoft, this is a bold step into the future and the next big phase of the transformation we announced on July 11.

We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together. Our Windows Phone partnership over the past two and half years has yielded incredible work – the stunning Lumia 1020 is a great example. Our partnership has also yielded incredible growth. In fact, Nokia Windows Phones are the fastest-growing phones in the smartphone market.

Now is the time to build on this momentum and accelerate our share and profits in phones. Clearly, greater success with phones will strengthen the overall opportunity for us and our partners to deliver on our strategy to create a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most.

This is a smart acquisition for Microsoft, and a good deal for both companies. We are receiving incredible talent, technology and IP. We’ve all seen the amazing work that Nokia and Microsoft have done together.

Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we expect a smooth transition and great execution.

As is always the case with an acquisition, the first priority is to keep driving through close, which we expect in the first quarter of 2014, following approval by Nokia’s shareholders, regulatory approvals, and other closing conditions.

But I also know people will have some questions about what happens post-close. While details aren’t final, here is what we know, and how we’re generally approaching integration:

1. Stephen Elop will be coming back to Microsoft, and he will lead an expanded Devices team, which includes all of our current Devices and Studios work and most of the teams coming over from Nokia, reporting to me.

2. Julie Larson-Green will continue to run the Devices and Studios team, and will be focused on the big launches this fall including Xbox One and our Surface enhancements. Julie will be joining Stephen’s team once the acquisition closes, and will work with him to shape the new organization.

3. As part of the acquisition, a number of key engineering leaders will be joining Microsoft from Nokia, reporting to Stephen in his new capacity:

· Jo Harlow, who will continue to lead the Smart Devices team

· Timo Toikkanen, who will continue to lead the Mobile Phones team

· Stefan Pannenbecker, who will lead Design

· Juha Putkiranta, who will lead the integration effort on Nokia’s behalf

4. Regarding the sales team, we plan to keep the Nokia field team, led by Chris Weber, intact and as the nexus of the devices sales effort, so that we can continue to build sales momentum. After the deal closes, Chris and his team will be placed under Kevin Turner. We will develop a single integrated team that is selling to operators, and there may be other integration opportunities that we can pursue. Kevin will work with Chris Weber and Chris Capossela to make those plans.

5. Our operating system team under Terry Myerson will continue unchanged, with a mission of supporting both first-party and third-party hardware innovation. We are committed to working with partners, helping them build great products and great businesses on our platform, and we believe this deal will increase our partner value proposition over time. The established rhythms and ways of working between Terry and his team and the incoming Nokia team will serve us well to ensure that we do not disrupt our building momentum.

6. We are planning to integrate all global marketing under Tami Reller and Mark Penn. It is very important that we pursue a unified brand and advertising strategy as soon as possible.

7. Finance, Legal, HR, Communications, DX / Evangelism, Customer Care and Business Development will integrate functionally at Microsoft. Sourcing, customer logistics and supply chain will be part of Stephen’s Devices organization. ICM / IT will also integrate functionally for traditional IT roles. We will need to work through the implications for factory systems given the differing manufacturing processes and systems at both Nokia and Microsoft.

8. We plan to pursue a single set of supporting services for our devices, and we will figure out how to combine the great Nokia efforts into our Microsoft services as we go through the integration process.

9. There are no significant plans to shift where work is done in the world as we integrate, so we expect the Nokia teams to stay largely in place, geographically.

10. Tom Gibbons will lead the integration work for Microsoft.

While today’s announcement is big news, we have to stay heavily focused on running the current business. We have a huge fall and holiday season ahead of us, so we need to execute flawlessly and continue to drive our business forward. I have no doubt we will.

Both Intel and Google are eyeing the lucrative video delivery domain for possible new expansions. This area if done properly by these two giants could provide a major disruptive technology and business set of offerings changing the face of the computer and TV industries. This may become the major “big stakes” battlefield of the next-gen TV services domain space.

Apple is probably thinking in terms of the “next generation” TV service. With its feet already wet via You Tube, they are giving strong signals that hey are serious about becoming players in this domain.

If able to pull it off, Intel will evolve to the next instantiation of this historic enterprise. This launch (probably 2014-ish) will challenge Intel’s ability to break away from its old internal models and practices to re-invent the enterprise to deal with content as an additional vehicle to achieve revenue goals rather than just HW. If OnCue is allowed to operate as an independent company with separate iMBOs, they may have a chance. The new blood recruited from various media sectors can help if they are given free reigns to establish a separate Intel subculture. Has that ever really worked before for Intel????

This is a very interesting slide deck on Internet Trends. Specifically when you dissect digital media into audio, photo, video and audio you see we are just at the beginning of a huge growth in demand for Cloud Services to support our digital lifestyle. When you combine what we want digitally with how we use it and socialize using it, the volume of digital content will grow at an unbelievable rate through 2035. internettrends052913final-130529094939-phpapp02

The dramatic growth in smartphone, tablet and vertical market portable devices e.g., medical instrumentation is starting to drive major change at big tech companies. If you watch product offerings and new positioning of Google, Microsoft, and Apple, you’ll see that significant investments are geared toward the mobile consumer and mobile information worker. These products require new device technologies such as flexible silicon and Thin flexible substrates for interconnect technology.

A good example of this is the lighting fast reorganization of Intel after Brian Krzanich’s installation as CEO. Under Otellini’s tenure Intel missed a huge opportunity to become the chip supplier to Apple for iPhones even though the traditional conservative “number crunching/data driven” advice given to Paul Otellini went against his gut, Intel passed on the opportunity. Their analysis misjudged the potential volume by a factor of 100 and over estimated the costs of manufacturing. Basically the conservative mindset of “group think” there projected the iPhone as a losing business proposition. See here The new CEO has immediately reorganized the global enterprise to make it more agile and created a New devices Group reporting directly to him. See here

Hopefully this will open Intel up to address new markets and new types of Si architecture along with manufacturing processes. Also the industry will hopefully follow Intel’s lead and innovate even more in this hot technology domain When you look at flexible silicon and thin film technologies, the future is clear. New companies will grow to tech giants that embrace this technology and benefit from lessons learned from the old tech giants.

The information age has brought about the rise of a new type of technology company. These are companies where the products or services they produce/provide are intrinsically connected to the IT infrastructure required to sustain the enterprise’s day to day operations. Unlike a food processor where the consumer product is supported by technology but disconnected once it is consumed. In these enterprises, the consumer buys a product/service that links them back into the enterprise’s IT infrastructure and the company monetizes this connection in order to perpetuate business and seduce the consumer down the path to purchasing more and more offerings to leverage the established link.

Even giants like Microsoft are going this way by eliminating free Hotmailand replacing it with free online Outlookand SkyDrivespace in the cloud. Companies who identify their current reliance on IT as a part of their business value proposition will be able to take advantage of this fact to create strategic inflection points. They will use adjunct offerings that take the enterprise to a new level of revenue and profitability. “Quick” tactical offerings with IT infrastructure “come-along” benefits will seed the prime rose path leading the consumer to partake in future offerings built upon a baseline infrastructure. Emergence of these new Technology Giants will be driven by executive leadership recognizing that IT isn’t just a necessary evil but rather an important platform allowing the launch of never before revenue models and opportunities.

Social Media Marketing: Big corps will finally get serious because they’ll find a way to monetize the involvement with Social Media. So look for PR/Marketing plans to have integrated social media buys/plans

$3B annually is spent on Mobile ads but that is only 5%. Look for the trend setter to be advertising on tablets.

Set-Top Boxes In 2013: This technology goes through drastic changes. Content creator/owners and providers are try to increase engagement across channels and provide new UI application linkages to allow switching of context between VOD and programmed content.